Chip sales exceed expectations at record $16.6B in June

Stronger-than-expected demand for integrated circuits pushed worldwide chip sales to a record $16.6 billion in June, which was a 48.1% increase over revenues in the same month last year and 5.2% growth over billings in May, said the Semiconductor Industry Association today. June was the fourth consecutive month that set a record high for semiconductor sales, based on the SIA's three-month moving average.

"June's numbers exceeded our expectations and affirm our forecast for a strong 2000," said George Scalise, president of the SIA, referring to the group's revised forecast for 31% growth in semiconductor revenues to $195 billion this year. "These record-high [June] numbers reflect the growth in the Internet infrastructure and wireless communications markets," Scalise added.

According to the San Jose-based trade group, sales of flash memories grew 167% in June, compared to shipments in the month last year. Field programmable logic devices were up 106%; digital signal processors (DSPs) grew 51%; standard analog chips rose 70%, and optoelectronics devices increased 65%, said the SIA, which did not release sales figures for those product categories.

Scalise indicated that high-volume consumer products, such as wireless phones, personal digital assistants (PDAs), and set-top boxes, drove the sales of these types of semiconductor in June. DRAM sales were up 75% and microprocessor grew 36% in June, compared to a year ago, based on solid growth in personal computer shipments, according to the SIA.

Using its three-month moving average, the SIA has reported record monthly sales since March, when revenues reached $15 billion. Chip sales climbed steadily to $15.2 billion in April and $15.8 billion in May before surging to $16.8 billion in June. Semiconductor sales totaled $11.2 billion in June 1999.

As in previous months, the Asia-Pacific and Japanese chip markets grew the fastest in June.

Chip sales in the Asia-Pacific region grew to $4.26 billion in June vs. $4.05 billion in May--a 5.1% increase. Compared to June 1999, Asia-Pacific chip sales were up 52.8% from $2.78 billion, said the SIA.

In Japan, semiconductor sales grew 5.1% to $3.71 billion in June vs. $3.53 billion in May. Compared to June 1999, semiconductor sales in Japan were up 50.8% in June compared to $2.46 billion in the month last year.

Chip sales in the Americas increased 7.8% to $5.23 billion in June compared to $4.85 billion in the previous month. Sales were up 42.7% from $3.67 billion in June 1999, said the SIA.

European semiconductor sales grew 1.8% in June to $3.44 billion compared to $3.38 billion in May. The region's chip revenues were up 48.1% in June compared to $2.33 billion, according to the monthly sales report.